“We had been looking in to getting solar for a while, but had trouble comparing and evaluating the prices installers were giving us. After finding Solar to the People, we received proposals from four installers in their network and they helped us determine which would be the best option for our house. We were extremely impressed with the quality of installers they recommended, and we ended up selecting one and paying about $6,400 less for our system than we had originally expected. Great company.”
“I was sick and tired of paying more and more for electricity each year. We never thought we could afford solar panels, but then we saw Solar to the People’s study on the prices of solar in New York and were shocked to learn how much the cost had dropped. I immediately went on their site and requested quotes from their installers. We couldn’t be happier with our decision to go solar – our average power bill now is just seven dollars a month! ”
“My wife and I were curious about solar, but frankly, I didn’t trust the solar sales people who had been calling us and knocking on our door. I came across Solar to the People in one of my Google searches, and they had a lot of really in depth information about solar on their site. To me, getting my questions answered online and being able to choose from multiple installers made all the difference. We got a great deal on our solar system and ended up paying about 20% less than the quotes we had gotten from other solar companies in the past. ”
“My husband and I both work full-time, and since we’ve had our daughter, we don’t have time to do a bunch of research on solar installers. We found Solar to the People through their online Solar Guide, and ended up purchasing our panels through their installer network. We wanted recommendations we could trust and Solar to the People gave us that peace of mind.”
Solar loans are rapidly becoming one of the most popular choices for financing solar today. They frequently provide better overall savings than solar leases or PPAs, as you own the system and consequently receive the 30% Federal Investment Tax credit for your solar purchase, as well as any state and utility rebates. In addition, you don’t have to pay for solar lease maintenance costs or profit margins.
Most importantly with the advent of zero-down solar loans (loans where no upfront payment is required), homeowners are able to immediately start saving on their power bill, while increasing the value of their home by the value of their panels.
Solar loans are loans issued expressly for putting solar panels on a house. They have a principal amount, an annual interest rate, monthly payment requirements, and a payback period, just like any other loan. For example, you might see a $20,000 solar loan with a 4.5% interest rate, and a fifteen-year payback period. These loans work quite similarly to a home improvement loan or an auto loan.
Banks, credit unions and solar installers issue loans, so you have plenty of potential providers to choose from. These providers are creating new loan options all the time, so it is becoming easier and easier for homeowners to find a loan that fits their exact financing needs.
Loans are ideal for homeowners who:
There are three types of solar loans available today to consumers – secured, unsecured and municipal. We drill into the differences in the table below, but the principal difference between the two is that secured loans use your home as collateral, while unsecured loans utilize the solar panels themselves as collateral.
|Type||Secured Solar Loans||Unsecured Solar Loans||Municipal Solar Loans (PACE)|
|What is used as collateral?||Home||Solar Panels||Home|
|Is there an FHA Guarantee?||Yes||No||Depends|
|Loan terms||5-20 years||5-20 years||Varies|
|Interest rate||3.5-6.5%||3.5-9%||3% and up|
|Interest is tax-deductible?||Yes||No||Yes|
|Special notes||Lower origination fees than unsecured|
Homeowners sell their homes with solar loans on their panels on a regular basis. The seller pays off the loan with the payment for the solar on the home, or in some cases the new owner takes out a separate solar loan and uses the proceeds to buy out the previous owner’s loan. The panels are considered in the price for the home, and homeowners receive the value of the panels during the sale as part of the overall price for the house.
Indirectly, yes. Solar panels that you own on your home increase the home value by as much as the panels are worth during a home sale.
Savings are higher with loans than leases for the exact same reason that auto loans are less expensive overall than auto leases – the provider of the money doesn’t have to be involved in the long-run. Solar lease providers are concerned with upkeep, figuring out if they priced the lease correctly in the first place, handling monitoring, etc. Solar loans are just like a regular loan – a bank or other financing organization provides you with a loan, and you purchase and own the asset (in this case residential solar panels).
Solar loan risks are the same as with any other loan, such as a car loan or a home loan, except for the fact that the loan serves to reduce another bill (power), which is required. Really it’s more of a substitution of costs. Nevertheless, it is very important that the homeowner budgets for the loan correctly and factors the loan payments into their regular budget.
Solar installers, banks, credit unions, and independent financing companies all provide loans, so the options for homeowners are increasing all the time.
All of our pre-screened providers offer loan options along with other financing options.